Chief Financial Officer (CFO)
Salary

Salaries for Chief Financial Officers in the United States are generous, with average pay above six figures ($126K) per year. Cash earnings for Chief Financial Officers — which occasionally include more than $61K from bonuses and more than $31K from profit sharing — stretch from around $65K to approximately $244K. Location and career duration each impact pay for this group, with the former having the largest influence. Medical benefits are awarded to a large number, and the greater part earn dental coverage. The majority of Chief Financial Officers (67 percent) survey respondents are male. Most Chief Financial Officers like their work and job satisfaction is high. This report is based on answers to PayScale's salary questionnaire.

XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).

XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).

Job Description for Chief Financial Officer (CFO)

The Chief Financial Officer (CFO) is a top executive position among all businesses in which the position is incorporated. CFOs are the head in almost all financial decisions within a business and they only report to CEOs of the company. A company's success relies heavily on the wherewithal and business savvy of the CFO.

The primary duty of a CFO is in making the decisions as to what financial risks a company will pursue. These types of risks include reaching out to new markets, development of new products, discontinuance of current products, and every other major financial decision that may be made within a company. Chief Financial Officers tend to work indoors in a very nice office and they usually have a secretary. They work primarily with a telephone and computer. Their boss is the top executive of the company, the Chief Executive Officer (CEO). They may sometimes work along with another CFO but the only other position at the same level is the Chief Operating Officer. CFO's work regular business hours, Monday through Friday, 8 AM to 4 PM, or 9 AM to 5 PM. However, due to their high position in the company they have more freedom in deciding when they work. A Master of Business Administration (MBA) is the typical degree required for becoming a CFO. If not an MBA, a CFO usually has a degree in accounting.

Without a CFO, many businesses would have a hard time managing their finances and making appropriate financial decisions for the company. As a result, the CFO is held in high esteem. Their abilities and foresight can make or break a company. Today their role is even changing to become even more important than it had been prior. Many CFOs are now also appointed as advisers to CEOs.

Chief Financial Officer (CFO) Tasks

Provide leadership and coordination in the administrative, business planning, accounting and budgeting efforts of the company.

Common Career Paths for Chief Financial Officer (CFO)

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Though not the most common occurrence, Chief Financial Officers sometimes become Presidents and COOs, where the average income is $178K per year. Career advancement for the typical Chief Financial Officer often leads to becoming a VP of Finance or Chief Financial Officer or a Chief Executive Officer; median salaries in these positions are $15K higher and $41K higher, respectively.

Chief Financial Officer (CFO) Job Listings

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Popular Skills for Chief Financial Officer (CFO)

This chart shows the most popular skills for this job and what effect each skill has on pay.

Survey participants wield an impressively varied skill set on the job. Most notably, facility with Strategic Planning, Financial Modeling, and Senior Financial Management are correlated to pay that is significantly above average, leading to increases of 28 percent, 17 percent, and 9 percent, respectively. Those listing General Ledger Accounting as a skill should be prepared for drastically lower pay. Microsoft Excel and Human Resources also typically command lower compensation. Most people familiar with Financial Analysis also know Senior Financial Management, Budget Management, and Accounting.

Pay by Experience Level for Chief Financial Officer (CFO)

Median of all compensation (including tips, bonus, and overtime) by years of experience.

Experience is an important factor influencing the compensation of Chief Financial Officers. The average worker who claims fewer than five years of experience earns around $84K. In contrast, however, individuals who report five to 10 years in this occupation see a much larger median of $106K. Chief Financial Officers see a median salary of $131K after reaching one to two decades on the job. Chief Financial Officers who surpass 20 years on the job report pay that isn't as high as one would expect; the median compensation for this crowd sits around $143K.

Pay Difference by Location

For Chief Financial Officers, working in the bustling city of New York has its advantages, including an above-average pay rate. Chief Financial Officers will also find cushy salaries in San Francisco (+47 percent), Chicago (+33 percent), Boston (+29 percent), and Los Angeles (+25 percent). Trailing the national average by 4 percent, Phoenix is the market with the smallest paychecks.